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As Jerome Powell and The Federal Reserve continue to raise rates and let Treasury Notes on their $4.4 trillion balance mature, we are seeing financial market disruptions, such as spikes in stock market and 10-year Treasury Note volatility. But the one asset that is seeing a decline in volatility is gold.

(Bloomberg) — While volatility surged across asset classes last week, a gauge tracking the cost of hedging against price swings in gold fell. The CBOE/COMEX Gold Volatility Index dropped for a third straight week, the longest streak of the year, as the biggest exchange-traded fund tracking bullion posted its longest run of inflows since September. With the prospect of higher inflation and U.S. tariffs on metals, investors are turning to havens such as gold.

As The Fed let’s its balance sheet shrink, we have seen a spike in the VIX and TYVIX at th beginning of February after a large block of Treasury Notes matured at the end of January. While VIX and TYVIX subsided, they remaind elevated relative to levels before the end of January.

The S&P 500 has experienced bad times since the end of January and Fed T-Note maturities, but gold has gotten pounded less.